suppose that the exchange rate adjusts so that the interest-rate parity holds. suppose also that the interest rate on a one year German bond is 7 percent adn the interest rate on a one year U.S. Bond is 4 percent. Suppose that you expect the exhange rate in one year to be 1.2 dollars pers euro. What is the exchange rate today? Suppose the relative purchasing-power parity holds and that the inflation rate in Germany is expected to be 2 percent over the next year. what is the espected inflation rate in the United States